As the summer months approach, the central government is taking measures to ensure adequate power supply across the country. The government has issued instructions to all state electricity boards to make necessary arrangements to meet the power demand during the summer season.
India faces frequent power shortages during summers, particularly in rural areas, due to the high demand for electricity for cooling purposes. However, this year, the government is determined to avoid any such shortages and has taken several steps to ensure an uninterrupted power supply.
The Ministry of Power said it is taking several measures to curtail power cuts in the coming summer months.
The government has directed all power utilities to undertake maintenance of coal-fired power plants well in advance to avoid shortages during the months of April and May, which typically face peak power demand. All coal-based plants have been directed to run at full capacity from March 16, according to a Reuters report.
The government has also asked all thermal power plants to stockpile adequate coal to prevent any disruptions in power generation.
In addition, the government has asked the central power regulator to coordinate with the state electricity boards to ensure that power is transmitted smoothly across the country. The regulator has also been asked to take necessary steps to prevent any transmission losses.
On Friday, Union Power Minister RK Singh launched a High Price Day Ahead Market and Surplus Power Portal (PUShP) – an initiative to ensure greater availability of power during the peak demand season.
Last year, the Ministry of Power observed that on some days, the prices in the electricity exchange had gone up to Rs.20, and directed the CERC to put a price cap of Rs.12 on the exchange to avoid profiteering.
The cap was imposed from 01.04.2022 in the Day Ahead Market & Real Time Market, and further in all segments from 06.05.2022. This move rationalized the price for buyers. However, due to the high prices of gas in the international market, the electricity produced using gas was expensive – more than Rs 12 per unit – and this capacity could not be sold on the market. Similarly, imported coal-based plants and Renewable Energy stored in battery-energy storage systems could not be brought into operation as their generation cost was high. This year, it is expected that the demand will be much higher than last year.
Therefore, the gas-based and imported coal-based plants will need to be scheduled. To address this issue, a separate segment called HP DAM has been created for those generation systems where the cost of generating power from gas, imported coal, or renewable energy plus storage may cross Rs.12. The initiative will help ensure the availability of power during peak demand season, thereby benefiting consumers across the country.
